Vice-President of International Chamber of Commerce (ICC)-Bangladesh Latifur Rahman urged Sunday the government and the central bank to reduce the bank rate and take appropriate fiscal and other policy measures to encourage higher capacity utilisation and more investment. He said such measures in the long run will help create an industrial base for establishing a smooth supply chain and control the present price spiral that is seriously affecting the low and middle income groups.

He said the existing interest rates are much higher compared to those in the neighbouring countries and the position of local businesses is becoming more vulnerable in a competitive international market. The ICC-B vice president was addressing as chief guest at a workshop on ‘Understanding UCP 600’ in Dhaka in collaboration with German Technical Co-operation (GTZ).

“You are aware that presently, the financial sector of Bangladesh, with improved management and reforms, is expected to maintain a steady growth in 2007 with further streamlining of their operations by the regulatory bodies, particularly by the central bank. However, the move by the Bangladesh Bank in implementing the suggestion of the International Monetary Fund (IMF) for a contractionary monetary policy to control inflation may have a negative impact on the increasing trend in investment,” Latifur Rahman mentioned.

While emphasising the importance of capacity building of local professionals, he said that in an era of globalisation, to safeguard domestic interest in the international trade, banks and financial institutions, stake-holders like readymade garments (RMGs), other export oriented industries as well as everyone involved in import and export trade, there is no alternative to training in areas of product knowledge, contract and documentation.

Latifur Rahman said the ICC Bangladesh has been on the forefront in providing clarity to the provisions of the instruments of letters of credit (LCs) for a number of years. “It has always been our endeavour to impart training and make available the latest know-how to the users of documentary credit so that there is clearer understanding and application of the provisions of UCP (uniform customs practice) in trade transaction,” the ICC-B vice president added.

ICC’s documentary credit or LC as a means of making and securing payment is an effective instrument for conducting international trade for many countries including Bangladesh, but it becomes an effective instrument provided the conditions regulating its use are stated in clear and unambiguous terms and understood by the users. President of BGMEA Anwar-ul-Alam Chowdhury Pervez said that commercial executives in the RMG sector should be aware of all the latest international trade rules to compete in a globalised world.

The BGMEA chief said new international payment methods like contract and factoring are now being practised in different countries to felicitate the international trade. President of Bangladesh Knit Manufectuers and Exporters Association (BKMEA) Md. Fazlul Hoque said there is no centre in Bangladesh to resolve business disputes relating to international contracts, and as a result, cost of doing business is rising. He urged the ICC,B President to establish a centre to handle settlement of ever increasing disputes in international trade with Bangladeshi counterparts all over the world.

GTZ PROGRESS Program Coordinator Dr. Dietrich Stotz said Progress supports a multi-level and multi-stakeholder approach in order to foster market compatible instruments such as social and environmental standards.

ICC expert on UCP Vincent O’Brien also spoke at the inaugural session. Business leaders including Samson H. Chowdhury, A. S. M. Quasem and R. Maksud Khan also attended the inaugural session.

About 150 participants from apparel and knitwear attended the workshop.